Bajaj Housing Finance Limited (BHFL), classified as an Upper-Layer NBFC by the RBI under the Scale Based Regulations, is a wholly-owned subsidiary of Bajaj Finance Limited. As one of India's most diversified non-banking financial companies (NBFCs), Bajaj Housing Finance caters to a broad spectrum of customers, exceeding 88.11 million across the country. Headquartered in Pune, BHFL provides financial solutions for various needs, including the purchase and renovation of homes and commercial spaces, loans against property, and working capital for business expansion. The company also offers financing to developers involved in constructing residential and commercial properties, along with lease rental discounting services.

Bajaj Housing Finance IPO Overview The Bajaj Housing Finance IPO is a Book Built Issue aimed at raising a substantial ₹6,560.00 Crores. This includes a Fresh Issue of 50.85 lakh shares worth ₹3,560.00 Crores and an Offer for Sale of 42.85 lakh shares totaling ₹3,000.00 Crores. The subscription period for the IPO commenced on September 09, 2024, and concluded on September 11, 2024.

The price band for the IPO is set between ₹66 and ₹70 per equity share, with a minimum lot size of 214 shares. Retail investors are required to invest a minimum of ₹14,980, while High-Net-Worth Individuals (HNIs) must invest in a minimum of 14 lots (2,996 shares), totaling ₹209,720.

The IPO is managed by a team of book-running lead managers including Kotak Mahindra Capital Company Limited, BofA Securities India Limited, Axis Capital Limited, Goldman Sachs (India) Securities Private Limited, SBI Capital Markets Limited, JM Financial Limited, and IIFL Securities Limited. KFin Technologies Limited is the registrar handling the allotment process. Shares are expected to be listed on BSE and NSE, with a tentative listing date of September 16, 2024.

Subscription and Allotment Status As of 6:00 PM on September 11, 2024, the Bajaj Housing Finance IPO had been subscribed 63.61 times, indicating strong investor interest. The Grey Market Premium (GMP) for the IPO is expected to range between ₹60 and ₹65, suggesting potential listing gains of 90% to 95%. However, it is crucial to note that GMP is speculative and subject to market dynamics.

To check the Bajaj Housing Finance IPO allotment status, investors should visit the registrar's website:

Navigate to the IPO allotment status page.

Select Bajaj Housing Finance Limited IPO from the dropdown list.

Enter your application number, PAN, or DP Client ID.

Submit the details to view your allotment status.

Objectives of the Bajaj Housing Finance IPO The proceeds from the IPO will be allocated as follows:

The Offer for Sale proceeds will be received by the Promoter Selling Shareholder, who will bear the offer expenses and taxes. The company itself will not receive any proceeds from the Offer for Sale.

Financial Performance and Valuation Bajaj Housing Finance has demonstrated robust financial performance, with revenue increasing from ₹37,671.3 million in FY22 to ₹56,654.4 million in FY23, and reaching ₹76,177.1 million in FY24. EBITDA also grew from ₹31,409.3 million in FY22 to ₹49,447.8 million in FY23, and currently stands at ₹68,935.3 million in FY24. The company's Profit After Tax (PAT) rose from ₹7,096.2 million in FY22 to ₹12,578.0 million in FY23, and is now ₹17,312.2 million in FY24.

For the IPO, the company is issuing shares at a pre-issue EPS of ₹2.6 and a post-issue EPS of ₹2.07. The pre-issue P/E ratio is 26.92x, while the post-issue P/E ratio is 33.81x compared to the industry average of 20.0x. The Return on Average Equity (ROAE) for FY24 is 15.2%, indicating that the IPO is reasonably priced based on current metrics.

Investment Recommendation Given the company’s strong financial performance and the attractive potential listing gains suggested by the GMP, the Bajaj Housing Finance IPO is recommended for investors looking for listing gains or long-term growth opportunities.

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